Taqa and ADNOC have struck a $1.9 billion deal to acquire controlling stakes in Abu Dhabi’s clean energy firm Masdar.
The Emirati firms are taking over the company from its 100% owner Mubadala Investment Company, the sovereign investor of Abu Dhabi.
Taqa will acquire a controlling 43% interest in the Masdar renewables business, with Mubadala retaining 33% and ADNOC holding the 24% remainder.
A green hydrogen joint venture was announced last year between the three firms.
ADNOC will hold the controlling 43% in that JV, with Mubadala holding 33% and Taqa owning 24%.
As part of the deal TAQA will contribute its rights to a minimum 40% share in future Abu Dhabi renewable projects and green hydrogen projects.
Taqa is an energy and utilities-focused company, while ADNOC is the UAE’s national oil and gas company.
This deal marks a “major milestone” towards completing a deal announced late last year by UAE president, Sheikh Mohamed bin Zayed Al Nahyan, aiming to create a “clean energy powerhouse” consolidating the renewable and green hydrogen efforts of Taqa, Mubadala and ADNOC under the Masdar brand.
Demand surge for hydrogen and green power
Once complete, Taqa will have exceeded its 2030 targets of having more than 30% of its generation capacity from renewable energy.
CEO Jasim Husain Thabet said it will also “accelerate” future growth plans as “demand for renewable power and green hydrogen projects significantly increase”.
Khaled Salmeen, executive director of downstream at ADNOC said: “Signing of the binding agreements for this landmark transaction marks another important milestone in ADNOC’s ongoing journey to future proof its operations and grow its new energies business.
“We are excited to join forces with TAQA and Mubadala, consolidating our combined efforts to create a new national champion for renewable energy and green hydrogen.”
The deal is still subject to transaction requirements, including third-party and regulatory approvals expected to take “a number of months”.
Musabbeh Al Kaabi, CEO, UAE Investments of Mubadala Investment Company, commented: “This milestone is a clear testament of Mubadala’s commitment to realizing the UAE’s long-term sustainability ambitions.
“We established Masdar 16 years ago with the foresight to diversify the UAE’s energy mix and advance the global energy transition. Today’s signing with two of Abu Dhabi’s key energy players, ADNOC and TAQA, further cements Mubadala’s responsible investing strategy and is one step closer to delivering on the UAE’s sustainability aspirations.”